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Nano-Proprietary, Inc. Announces Key Patent Issuance

AUSTIN, TX -- (MARKET WIRE) -- July 6, 2006 -- Nano-Proprietary, Inc. (OTCBB: NNPP), today
announced that its Raman spectrum patents have been issued in the United
States, China, and South Korea. The European filings related to this patent
have been validated in France, Germany and the U.K., and we are in the
final stages of the prosecution of the patent in Japan.

The Raman spectrum patents cover emissions from carbon that fall within a
specific range on the UV Raman band. Our research has determined that all
carbon emissions suitable for use in displays fall within this range. These
patents cover emissions from all forms of carbon including carbon films,
carbon flakes, carbon nanotubes, etc. This patent is a basic patent with
broad coverage related to the activities that are covered by the patent.

The Raman spectrum patents greatly increase our ability to license our
portfolio of display patents. It removes any potential disputes about the
form of carbon being used, and its worldwide coverage will require
potential licensees to license prior to selling product in almost any
jurisdiction. The coverage provided by the Raman spectrum patent in China,
South Korea, and potentially Japan provides a significant value to our
portfolio.

ABOUT NANO-PROPRIETARY, INC.

Nano-Proprietary, Inc. is a holding company consisting of two wholly-owned
operating subsidiaries. Applied Nanotech Inc. is a premier research and
commercialization organization dedicated to developing applications for
nanotechnology with extremely strong positions in the fields of electron
emission applications from carbon film/nanotubes, sensors, functionalized
nanomaterials, and nanoelectronics. Electronic Billboard Technology, Inc.
(EBT) has investments related to electronic digitized sign technology. The
Companies have over 200 patents or patents pending. Nano-Proprietary's
website is www.nano-proprietary.com.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks
and uncertainties concerning Nano-Proprietary's business, products, and
financial results. Actual results may differ materially from the results
predicted. More information about potential risk factors that could affect
our business, products, and financial results are included in
Nano-Proprietary's annual report on Form 10-K for the fiscal year ended
December 31, 2005, and in reports subsequently filed by Nano-Proprietary
with the Securities and Exchange Commission ("SEC"). All documents are
available through the SEC's Electronic Data Gathering Analysis and
Retrieval System (EDGAR) at www.sec.gov or from Nano-Proprietary's web site
listed below. Nano-Proprietary hereby disclaims any obligation to publicly
update the information provided above, including forward-looking
statements, to reflect subsequent events or circumstances.